We note that there is indeed a trend in the market for bitcoins to be withdrawn from cryptocurrency exchanges. According to experts, the rate of BTC shipments from centralized trading platforms reached the 151,000-coin mark during June 2022.

Bitcoin withdrawal rates from cryptocurrency exchanges

Usually, this can be seen as investors’ desire to store cryptocurrency for a longer period of time, as cold storage facilities are much more reliable for this purpose. However, in the current environment, users are probably hedging against the backdrop of news about various platforms being blocked and going bankrupt.

For example, Voyager Digital was the last platform to file for bankruptcy. As the head of the company noted, one of the reasons for the financial problems was the non-payment of a loan from crypto fund Three Arrows Capital, which also became insolvent.

What is going on with cryptocurrencies?

As a reminder, this quarter was the worst quarter for Bitcoin in terms of returns since 2011, with the main cryptocurrency dropping in value by 56.27 per cent. That said, the activity in the crypto market is very much reminiscent of its similar state during the 2018 “crypto-zima”, according to experts. Here’s their commentary on what’s happening.

The Bitcoin network is approaching a state in which almost all those who only speculate in the cryptocurrency have exited the market entirely, selling off their holdings of the asset.

That is, analysts are making it clear that there are fewer and fewer people with a short-term interest in digital assets within the industry. Accordingly, the majority are now those investors willing to invest in coins for the long term. That means they have enough faith, and therefore understanding, of what is going on within the industry to take that kind of risk.

Bitcoin yields by month

According to Cointelegraph’s sources, the number of cryptocurrency wallets with balances of up to 1 BTC and between 1,000 and 5,000 BTC has increased significantly – these are the so-called “shrimpers” and “whales” respectively. These two categories of market players continue to actively accumulate coins, at an “unprecedented” pace.

Glassnode also notes that there has been a downward trend in the number of active crypto-addresses since November 2021. This means that the influx of “newcomers” to the crypto industry has slowed, meaning that the lion’s share of activity is among those who have been familiar with digital assets for at least a few years.

Number of active cryptocurrency wallets

To be more precise, the increase in the number of new active crypto-addresses has dipped to the values of the previous bearish trend – around 7 thousand wallets per day. At the same time, the number of transactions remained almost unchanged, which is another confirmation of the decline in activity of a significant portion of Bitcoin network users.

Increase in new cryptocurrency wallets in the Bitcoin network

The final point of the report is the historical high of the number of addresses with a non-zero balance, as this value now reaches 42.3 million units. During the previous bear cycle, the aforementioned metric only decreased steadily due to massive BTC sales. The conclusion is that there is a “growing level of determination among average crypto market participants”. That is, they are probably ready to wait out tough times in the market, but still buy the right coins “at a discount”.

Number of Bitcoin cryptocurrency wallets with non-zero balances

Read also: Nine of the most popular claims of cryptocurrency critics. How to properly refute them?

For the most part, large traders in the form of institutional, i.e. professional institutional investors, have been behind the recent fluctuations in the price of Bitcoin. Last week, the crypto industry saw an inflow of $64 million of their funds. 80 percent of this amount went to open short positions in Bitcoin, i.e. to make money on the potential collapse of BTC.

Inflows to different crypto projects by week

Most of the inflows belong to US investors, which is understandable – on June 22, ProShares launched an exchange traded fund (ETF) that offers clients the opportunity to open a short position on Bitcoin futures contracts. CoinShares analysts noted that institutional investors from Brazil, Canada, Germany and Switzerland are collectively behind inflows of $20 million.

In total, inflows into BTC short position investment products totaled $77.2 million for the year. They are second only to the most popular investment instruments based on the altcoin basket and Solana coin with a result of $213.5 million and $110.3 million respectively.

A breakdown of inflows to the industry by different projects, funds and countries

Efirium, on the other hand, received inflows of just $4.9 million in a week. This is the second week in a row that funds have flowed into the ETH-based ecosystem and trading tools, as before that there were eleven consecutive weeks of cumulative capital outflows. Among other altcoins, only the top 10 coins by market capitalisation had more or less notable inflows.


We believe that this trend confirms the development of the so-called bearish trend, i.e. the collapse stage of the coin market. Naturally, newcomers are not attracted to such conditions, as they are often hunting for the prospect of easy money. And that's a good thing too - there will be fewer and fewer sellers of crypto over time under such conditions. So now we just have to wait for an influx of buyers to start a new bullrun.